what is occasion segmentation

Full Answer

What is the importance of occasion segmentation?

Importance of occasion segmentation. Some products or services are seen as being appropriate for a particular situation or occasion. Meaning, that the customer is looking for specific products on specific times or occasions. Occasion segmentation classifies the customers into time bound needs based on some certain important event in a persons life.

What is time bound segmentation in marketing?

This type of segmentation is usually time bound and helps targets those customers who want a certain product for a certain event or occasion. Some products or services are seen as being appropriate for a particular situation or occasion. Meaning, that the customer is looking for specific products on specific times or occasions.

What are segments?

However, those segments represent occasions for interaction with your product, brand or category. Unlike traditional segmentation, one person will likely experience or belong to multiple segments, or occasions.

What is consumer segmentation in marketing?

As the name suggests, this category of segmentation studies the behavioral traits of consumers — their knowledge of, attitude towards, use of, likes/dislikes of, or response to a product, service, promotion, or brand. Understand how to address the particular needs and desires of customer groups

What is occasion segmentation example?

Occasion-based segmentation identifies opportunities for growth based on the occasion when the product or service is used. In many categories, like beverages, the same consumer can experience a wide variety of needs, based on the situation. For example you get up in the morning and you drink coffee and orange juice.

Why is occasion segmentation important?

Occasion-based segmentation helps you understand the distinct occasions in which consumers purchase and interact with products or categories.

What is occasion in behavioural segmentation?

Occasion or timing-based segmentation Occasion-based segmentation categorizes customers who are most likely to interact with your brand or purchase from your website on either specific occasions or set times.

What is product use occasion?

In the world of consumer research, the term “occasions” refers to times and events during which products are used, as well as times and events that drive product purchase.

What are occasions in marketing?

What is Occasion-based Marketing? Occasion-based Marketing implies brands taking advantage of the occasions, events, or holidays to showcase their brand to the target audience. It is a way to improve sales and attract customers. The aim is to market products/services which suit the purpose of the occasion.

What do you mean by occasion?

noun. a particular time, especially as marked by certain circumstances or occurrences: They met on three occasions. a special or important time, event, ceremony, celebration, etc.: His birthday will be quite an occasion.

What are the 4 types of market segmentation?

Demographic, psychographic, behavioral and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types. Here are several more methods you may want to look into.

What is McDonald's market segmentation?

McDonald's is one of the most popular fast-food restaurants companies in the world. The way McDonald's built its marketing segmentation remains mysterious....2.3 Demographic Approach.Type of segmentationSegmentation criteriaMcDonald's target segmentDemographicAgeAll ageGenderMale/FemaleIncomeLow and Middle1 more row

What are five types of behavioral segmentation?

7 Behavioral segmentation examplesPurchasing behavior. Purchase behavior-based segmentation looks at how customers act differently throughout the decision-making process. ... Benefits sought. ... Buyer journey stage. ... Usage. ... Occasion or timing. ... Customer loyalty. ... User status.

What is usage occasion positioning?

Usage occasions based approach Occasion-based positioning identifies opportunities for growth based on the occasion when the product is used. Categories, like beverages, the same consumer can have a variety of needs and experience based on the situation.

What is a consumption occasion?

Three, seven-point semantic differentials are used to measure the extent to which a person views the situation in which a product is normally used to be either more pleasure-related (hedonic) in nature or more functional (utilitarian).

What is product segmentation?

What is a product segmentation strategy? A product segmentation strategy is when a business splits their product into several segments, each designed to cater to a certain industry, demographic, or another customer segment, and the process they use to achieve that goal.

What are the benefits of market segmentation?

Benefits of Market SegmentationIncreases clarity. ... Develops consumer insights. ... Improves brand loyalty and customer engagement. ... Streamlines mass customization. ... Optimizes for cost efficiency and resource management. ... Grows niche marketing capabilities. ... Promotes the application of business data. ... Enhances reliable assessments.More items...•

What is usage occasion positioning?

Usage occasions based approach Occasion-based positioning identifies opportunities for growth based on the occasion when the product is used. Categories, like beverages, the same consumer can have a variety of needs and experience based on the situation.

What is benefit segmentation give a good example?

An Athletic Footwear Company People, who run an athletic footwear company can use this concept to segment their market into trail runners, professional runners, and recreational runners. Footwear for trail runners must be comfortable, less slippery, and must reduce the risk of injury.

What is an example of behavioral segmentation?

The best example of behavioral segmentation by loyalty is observed in the hospitality segment where airlines, hotels, restaurants and others give their best service to provide the most excellent experience possible such that they can retain their customer. Service is a major differentiator in hospitality sector.

Occasion Segmentation: A Definition

Occasion Segmentation is the marketing strategy that divides customers into groups based on their purchasing habits during different occasions.

Benefits of using Occasion Segmentation

Using Occasion Segmentation you can deliver greater customer satisfaction because you will be selling the right product at the right time, thereby giving customers what they want, when they want it.

Examples of Occasion Segmentation

Valentine’s Day is a great example of Occasion Segmentation in action. It is both a regular occasion (occurs every year) and a universal occasion (most people celebrate it).

Summary

Occasion Segmentation is a marketing strategy where customers are classified into groups based on different occasions when they are more likely to buy certain products or services.

What is Demographic Segmentation?

Occasion Segmentation implies dividing consumers into subgroups based on different occasions when they make purchases or plan to buy. Marketers take advantage of these occasions to market products/services which are perfect for the celebration or the occasion. Some products are seen as suitable for a particular occasion or event.

What is Occasion Segmentation?

Occasion Segmentation is one of the variables of Behavioral Segmentation. It is also referred to as timing-based Segmentation.

Why should you use Occasion Segmentation?

Occasion Segmentation is the best guide to figure out the products or services that customers interact with on distinct occasions. You can conduct the research in terms of category in order to identify which category of products are selling well.

Occasions you can Use for Occasion Segmentation

Let’s say, you are a chocolate manufacturing company and you want to target the occasion of Thanksgiving Day, your target audiences are the families that visit malls for shopping.

Tips for using Occasion Segmentation for Marketing

You should not just ‘go with the flow’ only because the occasion is celebrated by tons of people. The occasion should be relevant to the brand and the industry. If your brand does not have a product, service, or content that fits the occasion you should not proceed with it. Make sure to choose an occasion that is relevant.

Why is occasion based segmentation important?

Because occasion-based segmentation provides a wide range of data that you can analyze in a variety of ways, it works especially well for improving product development, growth strategy , brand and shopper strategy , marketing and communications.

Why Choose Occasion-Based Segmentation?

Occasion-based segmentation helps you understand the distinct occasions in which consumers purchase and interact with products or categories. Since it’s done on the category level, and not just for the brand, you can find out where you’re performing well, and discover new opportunities for growing your brand or market share.

Why is segmentation important in marketing?

Although Kathryn is the same customer purchasing food from the same store, she shops each time for very different reasons. As a marketer, knowing when and where she shops, why, and what she’s looking for gives important guidance on how to communicate with her, as well as guidance on how to develop products, experiences and programs to reach her. That’s why segmenting your audience is so important—segmentation provides this very guidance.

Is segmentation effective for buying a new car?

On the other hand, this type of segmentation isn’t very effective for infrequent categories such as buying a new car or new laptop, or those where there isn’t typically a varying need or situation driving the purchase, such as buying cat litter or a phone charger.

Is segmentation new?

Segmentation, whether traditional person-based or occasion-based, isn’t new. But many of our clients, particularly those in high-frequency categories, have been asking about how to make their segmentation more actionable. The first step is to understand the differences between traditional and occasion-based segmentation.

Is segmentation a good strategy?

But when it comes to segmentation, one size doesn’t fit all. While traditional segmentation might be a good solution for planning marketing and communications strategies for many brands, it often falls short when you apply it to moderate- and high-frequency categories such as clothing, food and beverage, restaurants, CPG, personal care items and travel and leisure. Instead of segmenting by people, segmenting by occasion or interaction with your brand or category could be a better option.

Traditional vs. Occasion-Based Segmentation

Why Choose Occasion-Based Segmentation?

• Occasion-based segmentation helps you understand the distinct occasions in which consumers purchase and interact with products or categories. Since it’s done on the category level, and not just for the brand, you can find out where you’re performing well, and discover new opportunities for growing your brand or market share. Because occasion-based ...

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